VAT in Germany 2026 – Registration, Rates and Compliance for E-Commerce
Every e-commerce business planning to expand into the German market must be aware of the tax obligations that come with it. Germany is the fourth largest economy in the world and one of Europe’s largest e-commerce markets, making a solid understanding of German VAT rules essential for any online seller operating there.
The Basics: VAT in Germany
Value Added Tax (VAT) in Germany is known as Mehrwertsteuer or Umsatzsteuer. The German VAT system is governed by EU directives applicable to all member states, implemented nationally through the German VAT Act (Umsatzsteuergesetz, UStG).
When Is VAT Registration in Germany Required?
VAT registration in Germany is required for e-commerce businesses that:
- Store goods in Germany for shipping to customers — including Amazon FBA and other fulfilment centres
- Conduct B2C distance sales to German consumers exceeding the EU-wide threshold of €10,000 annually and do not use the VAT OSS procedure
- Import goods into Germany from outside the European Union, or export goods outside the EU
- Conduct intra-Community transactions (intra-EU supplies or acquisitions) involving Germany
Important: Foreign businesses without an establishment in Germany must register for VAT from their very first taxable transaction — there is no registration threshold for non-resident companies. The small business exemption (Kleinunternehmerregelung) applies only to Germany-based entities: from 2025, the threshold is up to €25,000 turnover in the previous year and up to €100,000 projected turnover in the current year.
VAT Registration Procedure for Foreign Companies
Foreign companies register for VAT in Germany at one of four competent tax offices, assigned alphabetically based on the company name:
- Tax Office Hameln — letters A to G
- Tax Office Oranienburg — letters H to L
- Tax Office Cottbus — letters M to R
- Tax Office Noerdlingen — letters S to Z
Applications are submitted via the ELSTER platform or by traditional correspondence. Processing times typically range from 6 to 12 weeks.
Required Documents
The exact list may vary by office or representative, but businesses should typically prepare:
- Articles of association / statutes / company agreement
- Extract from the national commercial register (e.g. KRS or CEIDG)
- Certificate from the home tax authority confirming active VAT payer status in the EU
- Copies of passports or identity cards of shareholders and authorised representatives
- Sample invoices issued to recipients in Germany
- Certificate of Tax Residence
- Consent for the tax office to issue the USt-IdNr. number
VAT Numbers in Germany
Germany uses two VAT-related numbers:
- Steuernummer (10–11 digits) — the equivalent of the Polish NIP, assigned after successful registration. Used for VAT returns, audits, and correspondence with the tax office.
- Umsatzsteuer-Identifikationsnummer (USt-IdNr.) — prefix DE followed by 9 digits, the EU VAT number equivalent. Used for intra-Community transactions and visible in the VIES system.
VAT Rates in Germany 2026
The VAT rates in Germany for 2026 are: 19% (standard rate), 7% (reduced rate), and 0% (zero rate). No changes have been made to the headline rates compared to 2025, with one notable exception: restaurant and catering food services (excluding beverages) are taxed at the reduced 7% rate from 1 January 2026, having previously been subject to the standard 19% rate.
Standard rate — 19% applies to most goods and services not covered by reduced rates.
Reduced rate — 7% applies to: selected foodstuffs, medical equipment for disabled persons, domestic passenger transport, press materials, books, e-books and audiobooks, admission to cultural and sporting events, short-term hotel accommodation, original works of art and collectibles (reduced from 19% to 7% from 1 January 2025), and from 2026 restaurant and catering food (excluding beverages).
Zero rate — 0% applies mainly to intra-Community and international transport, subject to certain conditions.
VAT Return Obligations
All businesses registered for VAT in Germany must submit periodic VAT returns — monthly or quarterly — as well as an annual VAT return.
- Monthly returns — required if VAT liability in the previous year exceeded €7,500
- Quarterly returns — permitted if VAT liability in the previous year did not exceed €7,500
- No periodic returns — if VAT liability in the previous year did not exceed €1,000
The deadline for submitting returns and paying any VAT due is the 10th day of the month following the end of the reporting period. Businesses are advised to apply for the permanent deadline extension (Dauerfristverlängerung), which grants an additional month and significantly eases compliance management. All returns are submitted exclusively electronically via the ELSTER system (www.elster.de).
Failure to pay or late payment of German VAT may result in interest charges or penalties ranging from 1% of the tax due up to €25,000.
E-Invoicing in Germany 2026
From 1 January 2025, all businesses operating in Germany have been required to have the technical capability to receive structured electronic invoices in XRechnung or ZUGFeRD format. For foreign companies conducting business with German partners, the ability to issue e-invoices is becoming an increasingly important element of the commercial relationship, as German businesses move toward full accounting automation. The obligation to issue B2B e-invoices is being phased in through to 2027–2028.
VAT OSS and Germany
VAT can also be settled in Germany using the VAT OSS (One Stop Shop) procedure. OSS allows e-commerce businesses to declare and pay VAT on B2C distance sales across the entire EU through a single quarterly return filed in the country of establishment. It is available to businesses from both EU member states and third countries. OSS does not cover B2B sales or local sales. If a seller stores goods in Germany, local German VAT registration is required regardless of OSS.
Summary
The key points for e-commerce businesses selling to or operating in Germany in 2026:
- VAT rates: 19% / 7% / 0% — restaurants and catering food at 7% from 2026
- Foreign companies must register from the first taxable transaction — no threshold applies
- Returns submitted via ELSTER — deadline the 10th of the following month
- OSS available for B2C distance sales without stock in Germany
- All businesses must be able to receive structured e-invoices (XRechnung/ZUGFeRD) from 2025
If you are running an e-commerce business and are looking for comprehensive VAT compliance support in Germany, our team of experts is ready to help: Contact us — amavat®
Bartosz Moch
